Sky Alloys and Power Limited has filed its Draft Red Herring Prospectus with SEBI for a mainboard IPO. The capital raise includes a fresh issue of 16.1 million equity shares and an offer for sale of 1.8 million shares, aimed at funding debt reduction and operational expansion in Chhattisgarh.
MUMBAI, India — Sky Alloys and Power Limited, an integrated steel manufacturing company based in Chhattisgarh, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The corporate regulatory filing outlines a mainboard initial public offering (IPO) aimed at accelerating domestic capacity expansion and reducing outstanding corporate debt. The proposed public offering comprises a fresh issue of up to 16.1 million new equity shares alongside an secondary market sale by existing promoters.
The structural financial move underscores a broader capital deployment strategy as primary metal manufacturers look to leverage India's continuing infrastructure and real estate demand. The industrial operator, which specializes in the manufacturing of sponge iron, mild steel billets, ferro-alloys, and thermo-mechanically treated (TMT) bars, plans to list its equity shares on both major domestic bourses—the BSE Limited and the National Stock Exchange of India Limited.
Detailed Capital Architecture and Shareholding Dynamics
According to the regulatory draft documents submitted to the market regulator, the public offering is structured as a 100% book-built issue. The total offering volume encompasses up to 17,891,000 equity shares with a face value of ₹10 each. This aggregate issuance is divided into two distinct transactional components:
Fresh Issue: Up to 16,084,000 (16.1 million) newly minted equity shares to generate primary growth capital.
Offer for Sale (OFS): Up to 1,807,000 (1.8 million) existing equity shares offloaded by the current promoter group.
Data extracted from the regulatory files indicates that prior to the public issue, the total paid-up equity share capital of the entity stands at 48,373,451 shares. Upon successful subscription and allocation of the fresh issue segment, the post-issue equity capital structure will expand to 64,457,451 shares.
The promoter selling shareholders participating in the secondary liquidation have been identified as Ravi Singhal and Nisha Singhal. Specifically, Ravi Singhal intends to divest up to 1,204,800 equity shares, while Nisha Singhal is slated to sell up to 602,200 equity shares. Collectively, the promoter group maintained a 72.33% equity stake in the manufacturing enterprise before filing the draft documentation.
Financial Profile and Corporate Operations
Sky Alloys and Power Limited operates an integrated manufacturing complex in Raigarh, Chhattisgarh. The operational framework encompasses semi-integrated facilities that allow for cost-optimized conversions of iron ore into finished structural steel products.
Audited financial statements included within the regulatory regulatory filings reveal steady upward trajectories in core operational revenue and profitability over successive fiscal periods:
| Financial Metric (INR Millions) | FY 2022-23 | FY 2023-24 | FY 2024-25 |
| Total Operational Revenue | 5,554.67 | 6,312.31 | 8,210.92 |
| Profit After Tax (PAT) | 375.64 | 449.67 | 530.46 |
| Reserves and Surplus | 508.35 | 948.79 | 1,705.94 |
| Total Corporate Borrowings | 1,321.05 | 1,785.77 | 2,697.10 |
The company's key performance indicators feature a Return on Net Worth (RoNW) of 27.83%, an EBITDA margin of 13.46%, and a Net Asset Value (NAV) per share pegged at ₹34.75. However, the balance sheet also displays a debt-to-equity ratio of 1.24, reflecting substantial capital asset investments made to scale output capacities. Production updates indicate that the company recently doubled its sponge iron manufacturing capacity from 60,000 metric tonnes to 120,000 metric tonnes to feed its internal steel billet and TMT production lines.
Official Sources Section
The information regarding the capital issuance, share breakdown, and operational metrics has been compiled directly from the official Draft Red Herring Prospectus filed by Sky Alloys and Power Limited. The documents were formally submitted through its appointed Book Running Lead Manager, Gretex Corporate Services Limited, and hosted on the official portals of SEBI and BSE Limited.
Quote Section
"According to officials familiar with the regulatory submission, the net proceeds generated from the fresh issue segment will be explicitly deployed to fund part of the company's long-term capital expenditure requirements, optimize manufacturing processes, and execute targeted debt reduction to strengthen the corporate balance sheet ahead of listing."
Why It Matters
The transition of Sky Alloys and Power from a closely held public structure to a publicly traded entity carries practical implications for industrial markets and market investors alike:
For Investors: The IPO offers retail, institutional, and high-net-worth individuals an entry point into a mid-tier, dividend-positive metal manufacturing firm with integrated raw material capabilities.
For Industrial Consumers: The capital injection allows the enterprise to stabilize its supply chains, scale production volumes of its registered "SKY TMT" bars, and fulfill supply mandates recently approved by the State Housing Authority and the Public Works Department.
For the Local Economy: Continued capacity expansions at the Raigarh hub translate directly into industrial asset development, regional employment, and enhanced captive clean energy capabilities via their developing solar power installations.
Key Facts at a Glance
Total Issue Size: Up to 17.89 million equity shares via a 100% book-built mainboard framework.
Primary Capital Generation: A fresh issue of 16.08 million shares to fund corporate debt reduction and infrastructure expansions.
Promoter Offloading: A secondary Offer for Sale comprising 1.80 million shares from the existing Singhal family holdings.
Core Financial Health: Operational revenues reached ₹8,210.92 million in the fiscal year ending March 31, 2025, with a PAT of ₹530.46 million.
Proposed Listing Destinations: Dual market inclusion on the National Stock Exchange of India (NSE) and BSE Limited.
FAQ Section
What is the price band for the Sky Alloys and Power IPO?
The specific price band, minimum bid lot sizes, and the exact discount structures (if any) have not yet been finalized. These values will be determined by the company in consultation with its lead managers close to the official launch date.
How will the company use the money raised from the fresh issue?
The primary capital raised via the 16.1 million new shares will be utilized to finance ongoing capital expenditure, settle or pre-pay certain high-cost corporate borrowings, and support general corporate purposes.
Who are the lead managers managing this public issue?
Gretex Corporate Services Limited is acting as the sole Book Running Lead Manager for this book-built initial public offering.
Source: Securities and Exchange Board of India (SEBI) Official Portal, BSE Limited Corporate Filings Desk
